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GREENSBORO — As doubt arises from some commissioners and a former state Supreme Court justice about the legality of a new incentive plan for small business, it seems certain there’s enough support to approve the policy.

Steve Arnold, vice chairman of the Board of Commissioners, has said that he’s spoken with nearly all commissioners and many like the incentive plan.

A $1.3 million fund has been set aside for the plan’s first year that, if approved, would cover a business’s increase in property tax bills for three years when it expands.

Now, others are speaking on the idea ahead of a discussion commissioners expect to have Thursday.

Councilwoman Trudy Wade brought the issue to the attention of City Council members Tuesday night.

“It was one of the first incentive-type programs for small businesses,” Wade said. “If there is any way we could do that, I would like the council to consider it.”

Council members did not indicate whether they would support a similar plan for Greensboro. But city staff members are researching the plan to determine what kind of impact it might have.

A strong voice of dissent comes from Raleigh.

Robert Orr, former N.C. Supreme Court justice and director of the N.C. Institute for Constitutional Law, does not support the plan.

“From our perspective, all of these incentives are unconstitutional,” Orr said. “At this point, the courts have not agreed with us.”

In 2008 the state Supreme Court said the incentives used to lure Dell to the Triad were legal.

Nonetheless, Orr and others question using incentives. Arnold and others argue that the money would offer help to smaller companies, not just large employers such as Dell.

“Incentives are legal, and that’s gone through the courts,” said Commissioner Kay Cashion, who supports the incentive plan. “It’s a grant; it’s not a tax rebate. It’s a grant.”

A pool of money would be created for expanding businesses to draw from as they grow and pay taxes, Arnold said. But the administering of those funds could be challenged in court. Special tax breaks for certain groups are illegal in the state.

Current incentives, like those for Dell, get around the issue by demanding jobs. Supporters say those types of incentives get a company to do what it would not otherwise do — move here.

Guilford County’s proposal for the smaller incentives, detractors say, would simply pay a local company to do what it’s already doing without any requirement for added jobs.

“This is nothing more than an opportunity to do this at the expense of taxpayers,” said Commissioner Billy Yow. It’s corporate welfare. If anything, it should be referred to as a tax reduction.”

An attorney who worked on the policy would not discuss the plan.

“I’m not in a position to comment on that through the media,” said Ernie Pearson, an attorney for the county’s legal counsel, Nexsen Pruet.

Some want a mandate for jobs.

“This ought to stand out in the light of day and give people the opportunity to throw rocks at it,” said Commissioner Paul Gibson, “and if it’s a good program, it will stand up.”

He also wants to hear what other Guilford cities and towns have to say.

Orr did not say whether he would challenge the legality of the policy, if it passes, but opposes incentives in general.

“I’ve been trying to put the brakes on it for 15 years,” he said. “And we’ve got a lot of folks talking about it, but very few elected officials are willing to sit up and say 'No’.”

Some commissioners who oppose or want more information are Gibson, Yow, John Parks and Kirk Perkins.

Commissioners Chairman Melvin “Skip” Alston likes the plan and has said that he believes that there’s enough support to pass it. Commissioner Linda Shaw, with Cashion and Carolyn Coleman, have said they support the plan.

Commissioners Bruce Davis and Mike Winstead did not return phone messages. Davis said recently that he supports the plan.

Staff writer Amanda Lehmert contributed to this report.

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com